After Israel’s borders were reopened to foreign tourists, Israeli airline El Al announced on Wednesday that it had halved its first-quarter loss, with passenger counts reverting to pre-COVID levels.
El Al, Israel’s national carrier, reported a $66 million loss in the first three months of 2022, compared to a $86 million loss the previous year. Revenue more than doubled to $283 million, however a significant increase in expenses erased much of the increase, according to the company.
At 0856 GMT in Tel Aviv, the airline’s stock was down 2.7 percent.
El Al’s sales had fallen due to COVID-19 limitations enforced during the pandemic, but the borders were reopened in March. Its load factor increased to 73 percent in the third quarter, up from 53 percent in the first quarter of 2021.
El Al, which has a 22 percent market share at Ben Gurion Airport near Tel Aviv, reported sales of $267 million in May, up 10% from the same month last year.
El Al, which operates a 45-strong Boeing fleet, has had to cancel a number of flights in recent weeks due to personnel shortages.
‘The return to routine is affecting many airlines around the world, which are facing high demand and are compelled to address credentials and labour gaps,’ said Dina Ben Tal, the new chief executive.
El Al, which was compelled to lay off one-third of its workforce as part of a government bailout deal, will train new employees and eventually return to a full fleet of planes, she said.
‘We have a lot of work to do on this,’ Ben Tal, who is taking over for Avigal Soreq, said.
El Al also stated that it was still in talks with insurer Phoenix Group for a $130 million loan, with the talks scheduled to be finished by the end of June.
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